NERC has proposed updates to its reliability standards to include certain inverter-based resources (IBRs) that are not directly connected to the Bulk Electric System (BES). These changes redefine "Generator Owner" and "Generator Operator," expanding compliance obligations for non-BES IBRs. Registration deadlines begin May 2026, ensuring that all relevant resources meet reliability requirements and strengthen the overall resilience of the electric grid.
What Are the Key Updates to NERC’s Generator Owner and Operator Definitions?
NERC has revised the definitions of "Generator Owner" (GO) and "Generator Operator" (GOP) to include non-BES inverter-based resources. This change aligns the definitions with updated registration functions and criteria approved by FERC in June 2024. Under the new rules, owners and operators of IBRs with an aggregate nameplate capacity of 20 MVA or higher, connected at voltages above 60 kV, fall under the "Category 2" registration requirement.
How Will These Changes Impact IBR Owners and Operators?
Entities managing non-BES IBRs that meet the Category 2 criteria must register with NERC as a GO or GOP. Compliance involves adhering to a set of eight reliability standards, which cover areas such as frequency response, voltage control, data collection, and equipment protection. This ensures that even smaller-scale IBRs contributing to system reliability are properly monitored and managed, reducing potential risks to the BES.
| Category 2 Criteria | Requirement |
|---|---|
| Aggregate capacity | ≥20 MVA |
| Connection voltage | ≥60 kV |
| Resource type | Non-BES IBRs |
| Registration | NERC GO or GOP |
Which Reliability Standards Will Apply to Registered Category 2 Entities?
Eight NERC standards will apply automatically to Category 2 registrants:
- BAL-001 TRE: Primary frequency response
- IRO-010-5: Reliability data collection and sharing
- MOD-032-1: Power system modeling data
- PRC-012: Remedial action schemes
- PRC-017-1: Scheme maintenance and testing
- TOP-003-6.1: Transmission operator data management
- VAR-001-5: Voltage and reactive control
- VAR-002-4.1: Generator operation to maintain voltage schedules
These standards enhance situational awareness and protect generating resources, helping maintain grid stability as IBR penetration increases.
When Do IBR Owners Need to Register Under the New Rules?
The registration requirement becomes effective May 15, 2026. Entities owning or operating eligible IBRs should assess their facilities now, determine if they meet Category 2 criteria, and plan for timely compliance with NERC standards to avoid operational or regulatory risks.
How Can Companies Prepare for NERC Registration Compliance?
Preparation includes reviewing IBR capacity and connection points, assessing existing monitoring systems, updating operational procedures, and implementing data reporting mechanisms. Companies should also train personnel on the applicable reliability standards to ensure full compliance and operational readiness.
Rettek Expert Views
"Rettek emphasizes the importance of proactive compliance with emerging energy standards. For operators of inverter-based resources, early registration and adherence to NERC Category 2 criteria not only ensure regulatory alignment but also enhance the reliability and longevity of critical energy infrastructure. Integrating high-performance solutions, like Rettek’s wear-resistant components in power equipment, further supports operational efficiency and system stability."
Who Should Monitor NERC Implementation Updates?
Energy operators, compliance officers, and engineering teams should closely follow NERC communications and FERC approvals. Timely awareness of updates allows organizations to adjust procedures, maintain operational reliability, and integrate new monitoring tools efficiently.
Conclusion
NERC’s revised definitions for GO and GOP and the inclusion of non-BES IBRs under Category 2 registration reflect a growing focus on grid reliability amid increased renewable integration. Companies managing relevant IBRs should act now to register, comply with standards, and ensure stable, safe operations. Leveraging expertise from trusted partners, such as Rettek, can optimize equipment performance and reliability during this transition.
FAQs
Q1: What is the Category 2 criterion for IBRs?
A: Category 2 includes non-BES inverter-based resources with aggregate capacity ≥20 MVA and connection voltage ≥60 kV, requiring registration as a GO or GOP.
Q2: Which standards must Category 2 registrants follow?
A: Eight NERC standards related to frequency response, voltage control, data reporting, and equipment protection apply automatically.
Q3: When does registration compliance begin?
A: Registration and compliance with applicable NERC standards are required by May 15, 2026.
Q4: How can operators prepare for compliance?
A: Operators should assess resource eligibility, update monitoring systems, implement data reporting, and train staff on standards.
Q5: How does Rettek contribute to reliable energy operations?
A: Rettek provides durable wear-resistant tools and parts, supporting the efficient operation of energy infrastructure and equipment longevity.